ICICI Bank offers 5% discount to retail buyers

ICICI Bank, the country's second largest bank, on Thursday said it will give a 5 per cent discount to retail investors on the price that will be set through book-building for its public issue of equity shares.

Retail investors have also been given the option of paying just Rs 150 per share on application and the balance on allotment. The bank expects to raise up to Rs 5,750 crore, including a greenshoe option worth Rs 750 crore from the domestic market. The bank has reserved 38 per cent of the issue for retail investors, including 5 per cent for existing retail shareholders.

K V Kamath, managing director and CEO, told a press conference that the bank plans to raise a total of Rs 8,050 crore through concurrent domestic and American depository share (ADS) issues.

The ADS issue would be for Rs 2,300 crore, including Rs 300 crore of greenshoe option. A part of the ADS issue will be reserved for offering in Japan as public offer without listing, enabling Japanese retail investors to participate in the issue.

The domestic issue will remain open from December 1-6. The price band for the issue will be set on November 30.

ICICI Bank is raising money to meet its capital requirements given its asset growth as the Indian economy expands. The bank's business focus is on retail and rural credit, international banking and traditional corporate banking. ICICI Bank's shares were up 0.6 per cent at Rs 531.3 on the Bombay Stock Exchange.